Indian Monsoon & Guar Market Update as on 1st June 2010
The Southwest Monsoon hit India's mainland in the southern coast of Kerala a day ahead of schedule yesterday, raising hopes of better rains this year that will raise farm output, help rein in food inflation and boost economic growth. If the monsoon progresses normally, it will hit the main Guar growing areas of Rajasthan and Haryana towards the end of this month.
Since mid April 2010 the price of Guar splits moved up gradually by around 8.3% and it is presently around 6.5% higher on account of
the arrival of the monsoon. However this rise has been more or less compensated by the depreciation of the Indian Rupee against the USD, by around 5.7%, in May 2010. As a result Guar Gum prices are more or less at the same level as that in mid April 2010. We believe this to be a buying opportunity and recommend that users cover a small part of their Guar Gum requirements at this stage.
Supplied to CyberColloids by : Premcem Gums Pvt. Ltd. Mumbai, India.